Children are considered the most valuable gift for parents. Parents adore their children and love everything about them. Regardless of how a child is, parents continuously care for them. especially for their education. Preparing your child for their college education will help them be ready to face the real world. It is indeed that children are the ones who will determine how the world is going to be after some years. As parents, we must help them to achieve their goals in life because who knows maybe one of your children will be a doctor that helps to cure people’s illnesses or an architect who plans and designs an astonishing infrastructure that is known globally.
What is an Educational Plan?
An educational plan serves as a savings, insurance as well as investment plan that aids parents to save funds for their child’s college education. The savings and investment element of an educational plan accumulates a set amount over time, while the insurance portion offers life insurance to the payor, usually the parent, during the plan’s tenure.The payor or the beneficiaries (in this case, the kid) are guaranteed compensation if something happens to the payor that results in permanent disability or death. The payor can use the educational plan to pay for the child’s college education after it has matured.
5 Important Factors to Consider When Selecting Educational Plans in the Philippines
- Payment Methods
Educational plans in the Philippines are a long-time financial commitment. It requires sacrificing one’s means and setting aside a certain amount of money to pay for the premiums. For this reason, It is vital to get a payment option that corresponds to your paying capacity. Regardless of its monthly, quarterly, semi-annually, or annually, select a payment plan appropriately to your financial capability. Additionally, think about an educational plan’s grace period and reinstatement policies. In the event, you miss a payment. Seek an educational plan provider that will help you carry on with your plan without too much trouble.
2. Withdrawals and Payouts
Insurers have distinct standards when it comes to payouts. Some provide fixed payouts a few years later you avail the plan or at once after your plan begins. The rest offers payouts when your child reaches the age of majority. Sometimes, there would be emergencies that will need you to make a partial withdrawal on your policy. This will be a good idea if you have this option on your educational plan.
3. Insurance Policy (Riders or Add-ons)
In some cases, there will be unexpected events that will require you to make a partial withdrawal on your policy. That is why it is important to have this option on your educational plan. Acquiring an educational plan in the Philippines is a bold movement securing your child’s future. But if you have a budget, you may also want to acquire extra layers of protection. Additional benefits like accidental death, terminally ill, disability, hospitalization, or premium waivers further secure that your child will be financially taken care of when you are no longer here. When it comes to compensation, insurance companies have varying standards. Some plans provide fixed payouts a few years after purchase or shortly after the plan begins. Others will payout when your child reaches a specific age.
4. Fund Growth
Select a plan that will let your money get bigger over time. It will let you earn more than what you pay for while also assuring you that even during unexpected emergencies, you are covered and well-taken care of. It will also allow you to attain your fund goals faster, too.
5. Educational Plan Ownership
Depending on your needs and choices, you should choose a plan that will cover your child’s whole high school or college education, or both. The easiest method to achieve this is to enroll your child in an educational plan while they are still very young (as young as 7 days old) so that you can pay for at least 10 years with cheap premiums.